Cryptocurrencies Rise as Investors Aim to Recover from "Black Monday"

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Cryptocurrencies Rise as Investors Aim to Recover from "Black Monday"

On Tuesday, the leading cryptocurrencies, Bitcoin and Ethereum, made significant moves as investors hoped to make up for losses incurred during "Black Monday." Bitcoin's price reached as high as $56,988 during trading hours, exhibiting choppy price action overnight, ultimately trading 14.23% lower for the week. Meanwhile, Ethereum also experienced volatility throughout the day, fluctuating between $2,430 and $2,550, with the Altcoin King down by 23% over the course of the week.

In the previous 24 hours, a considerable number of traders, totaling 54,989, were liquidated, resulting in a total liquidation amount of $176.41 million. This occurred after over a billion dollars locked in speculative bets was wiped out on Monday. Bitcoin's Open Interest saw a slight increase in the last 24 hours, reflecting caution among investors, while Ethereum recorded a 1.28% decline in Open Interest. The Longs/Shorts Ratio rose in the same period, indicating a closure of bearish bets in comparison to bullish ones, which could influence market sentiment moving forward. Additionally, the Cryptocurrency Fear & Greed Index improved from "Extreme Fear" to "Fear" following the recent rebound in cryptocurrency prices.

In the broader financial landscape, the global cryptocurrency market was valued at $1.97 trillion, experiencing a 0.88% decline in the last 24 hours. Conversely, the stock market saw a recovery on Tuesday after significant sell-offs on Monday, with the Dow Jones Industrial Average gaining 294.39 points, the S&P 500 lifting by 1.04%, and the Nasdaq Composite adding 1.03%. The Nikkei 225 in Japan also notably rebounded by 10% after a period of poor performance reminiscent of the "Black Monday" crash of 1987.